Universal Display Corp (OLED) stock analysis

P/E below its 5-year median

Universal Display's P/E of 18.4 is below its own 5-year median of 32.2.

P/E below the industry

Universal Display's P/E of 18.4 is below the Electronic Components and Accessories median of 34.6.

EV/EBITDA below its 5-year median

Universal Display's EV/EBITDA of 16.8 is below its 5-year median of 25.0.

P/B below the industry

Universal Display's price-to-book of 2.45 is below the Electronic Components and Accessories median of 3.49.

Trading below fair value

The share price of $90.54 is below our fair value estimate of $145.71.

Margin of safety over 20%

The price is 37.9% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 1.8% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 4.9% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew 4.0% over the last twelve months, against a 5-year average of 12.7% a year.

Growing slower than the industry

Revenue grew -1.9% over the last twelve months; the Electronic Components and Accessories median is 17.3%.

Guidance lowered

Universal Display lowered its 2026 revenue outlook on Apr 30, 2026.

Gross margin slipping

Gross margin was 74.9% over the last twelve months, against 76.5% a year earlier.

Return on equity under 15%

Return on equity was 13.5% over the last twelve months and averaged 15.9% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 15.0%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Universal Display's return on equity of 13.5% is above the Electronic Components and Accessories median of 4.8%.

Earnings grew over 5 years

Net income grew 12.7% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 36.7% over the last twelve months, against a 5-year average of 34.8%.

Net margin above the industry

Universal Display's net margin of 36.7% is above the Electronic Components and Accessories median of 3.0%.

No debt

Universal Display has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

No meaningful interest expense to cover.

Short-term assets cover short-term debts

Current assets are 7.56 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 13.59; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Universal Display paid dividends worth 2.2% of the share price over the last twelve months.

Yield below Treasuries

The 2.2% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Universal Display yields 2.2%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 9 fiscal years.

Covered by earnings

Dividends take 39.3% of net income.

Covered by free cash flow

Dividends take 39.2% of free cash flow.